In a momentous event for the global energy business, Saudi Aramco, Saudi Arabia’s state-owned oil company, has bought Primax, a major fuel distributor in Peru, Colombia, and Ecuador.
This deal, announced by the Peruvian business publication Gestión, represents the Arab firm’s second strategic entry into the South American market.
According to Reuters, the agreement demonstrates Saudi Aramco’s determination to grow beyond the Middle East and into emerging markets.
Saudi Aramco-Primax deal: financial details
As reported by Peruvian media outlet Gestión, the acquisition of Primax required a large payment of roughly $3.5 billion.
While neither Saudi Aramco, Primax, nor its parent company, Grupo Romero, responded immediately to the transaction, the size of the transaction demonstrates Aramco’s aggressive investment strategy as it diversifies its portfolio in an ever-changing global energy environment.
Primax, a subsidiary of the Peruvian Romero Group, operates a vast network of 2,185 petrol stations throughout Peru, Colombia, and Ecuador.
This acquisition not only strengthens Saudi Aramco’s operating capabilities in the region but also allows it to benefit from Primax’s extensive market presence and brand recognition.
The agreement accords with Aramco’s goals of tapping into South America’s expanding fuel consumption and strengthening its position as a prominent player in the world oil market.
Previous investments in Peru
Saudi Aramco has had prior experience in the Peruvian market.
To strengthen its presence in the country, the oil giant purchased a minority position in Hunt Oil Company’s Peru LNG plant, which is located south of Lima.
This facility is critical for the export of natural gas and liquefied natural gas, demonstrating Aramco’s commitment to being involved in all aspects of Peru’s energy sector.
The acquisition fits within the bigger picture of Primax’s previous strategic moves. Last year, the company finalized a $64 million transaction to sell assets and subsidiaries in Peru and Ecuador, refocusing its attention on industries with better development prospects.
Primax purchased 100% control of Terpel Perú and Terpel Comercial Perú, which operate fuel retail outlets and provide vehicular natural gas services.
This demonstrates Primax’s adaptability to market difficulties and strategic decisions to reduce operations for increased profitability.
The acquisition of Primax by Saudi Aramco marks a new era in South American energy dynamics, indicating more foreign investment in the region’s petroleum distribution business.
This transaction not only represents Aramco’s strategic goals but also establishes Primax as a key participant in connecting South American fuel resources to international markets.
As the energy environment changes, industry experts and stakeholders will closely monitor the ramifications of this acquisition.
The post Saudi Aramco acquires Peruvian fuel distributor Primax in $3.5 billion deal: what it means for the energy market appeared first on Invezz
